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MONTHLY
BUSINESS
REVIEW
oft h e
Volume 82
FEDERAL
RESERVE
BANK
Dallas, Texas, September 1, 1947
of
Dallas
Number 9
THE PORTS OF TEXAS-A RESOURCE OF THE SOUTHWEST
R. B. JOHNSON, Industrial Economist
Federal Reserve Bank of Dallas
The seaboard which stretches nearly 400 miles from the Mexican border to the Sabine River
is one of the busiest in the world. The rich southwestern hinterland ascending from the Texas coast
produces from its abundant reserves of minerals and fine soils a great excess of products above the
needs of its population. These surplus raw materials, foodstuffs, and finished products move in part
through Texas ports to the Atlantic seaboard, to the Middle West via the Mississippi and its tributaries, and to the nations east and south. Transport of goods to tidewater, processing of materials
adjacent to the ports, warehousing, brokering, and other trade and service operations attending
coastal and foreign shipments create large demands for workers and provide sources of income which
have contributed to the development of busy, populous, and wealthy centers of activity in the Texas
coastal area.
.
The Texas port and waterway system is thus an important factor in the economy of the Southwest. The excellent dispersal of the harbors along the coastline provides the region's agriculture and
industry with cheap and easy access to the markets of this country and of the world; the network
of inland channels permits industrial plants along the seaboard to benefit from low-cost local and
coastal barge shipments; and the inflow of capital to finance the development of port facilities and
the building of plants and warehouses to utilize them fosters the growth of coastal communities.
The extent of the contributions of the ports to the economy is not easily measured, but it is clear
that the growth of industrial and trading centers in north coastal and southwest coastal Texas and
the development of the resources of the southwestern region would have been less rapid had it not
been for the services the ports have offered. Moreover, future operations of the region's heavy industries and continuation of the rapid growth of coastal cities depend in part upon effective use of the
port system.
Despite the significant position which the ports occupy in the Southwest, no organized body of
information concerning their development, operations, or problems is generally available. This article,
which is perhaps only a first small step toward wider circulation of the more pertinent facts regarding the Texas ports, undertakes to present a concise description of the development of the ports,
their structure and organization, their importance in the southwestern regional economy, together
with a brief analysis of their prospects and problems.
The Development of Texas Ports
Texas ports are largely man-made. Those which carry the greatest traffic lie inland on the coastal
plain and were developed by dredging and widening bayous and rivers. Even those fronting tlle coast
did not provide adequate channels for large ships until jetties were extended into the Gulf and inlets
and bays had been dredged. Before 1896, Port Galveston was the only harbor capable of handling a
significant volume of traffic, and large ships could not safely use its facilities. The rivers flowed
irregularly and silted heavily, so that navigation was feasible only for short distances inland, and the
This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)
180
MONTHLY BUSINESS REVIEW
bays and inlets were too shallow to be easily or safely used. Produce moved coastwise and short distances inland via Buffalo Bayou, on Sabine Lake, and up the Brazos, Neches, Sabine, and other rivers;
but tllls traffic was small, seasonal, and confined principally to lighters, barges, and small craft.
The Texas seaboard, nevertheless, was an ~portant contributor to the early development of
the State. During the period of the Republic and the first years of statehood, the port cities dominated the economic and social life of the southwestern community and were the channels through
which a large portion of all trade moved. The then shallow harbors of Galveston, Velasco, Indianola,
and Sabine Pass were points of vigorous, although small, two-way traffic and of debarkation for
many colonists who brought their meager equipment and more important skills for use along the
coast, in central Texas, and on the Great Plains of the Southwest.
Although the early leaders of Texas recognized that an adequate port system would greatly
facilitate the growth of commerce and widen the opportunity for development of southwestern
resources, few harbor developments were undertaken until the 1880's, when extensive federally supported improvement programs were initiated at Galveston and in the river channels of the north
coastal area. Discovery of the famous Spindletop oil field near Beaumont in 1901 and subsequent
extension of oil producing areas along the coast increased the need and demand for ports and waterways to expedite movement of crude oil to the Atlantic seaboard, and between 1905 and 1915 many
improvements were initiated. Houston secured deep water in 1915; Beaumont, about one year later.
Development of these and other ports continued rapidly during the First World War, when traffic
was diverted from the eastern seaboard to Gulf ports to lighten the heavy burden being borne by
eastern ports and railroads.
Extension of the port system continued during the next two decades. The Port of Corpus Christi
was opened in September 1926; the Port of Brownsville began operating about ten years later. Channels were deepened and basins were enlarged in the older ports, and during the 1930's, the unconnected inland channel systems along the coast were joined, thus providing an intracoastal waterway
from Corpus Christi to Florida. These harbor and channel improvements, which were financed with
local-government and federal funds in varying proportions, were accompanied by heavy investments
by local governments and private interests in terminal and other facilities along the waterways and
at the turning basins. By 1940, the intracoastal waterway and the ports along the Texas coast formed
one of the most efficient water-traffic systems of the nation. Since then, dry docks, shipyards, and a
few terminal facilities have been built in the ports, but no major additions to the harbor and channel system have been completed, though dredging is now in progress for the extension of the Gulf
Intracoastal Waterway from Corpus Christi to Brownsville.
The Structure and Organization of the Ports
The Texas harbor and coastal waterway system now serving the Southwest includes 13 deepwater harbors, numerous shallow-draft loading points, and the Intracoastal Waterway. The harbors are
concentrated in four port areas. At the Texas-Louisiana border Sabine Pass, Sabine Lake, the mouths
of the Sabine and Neches Rivers and Taylor Bayou, and the Port Arthur and Sabine-Neches canals
provide channels, dock frontage, turning basins and ways for the ports of Beaumont, Orange, Port
Arthur, and Sabine Pass. Galveston Bay and the rivers and bayous which extend from it provide the
waterways for Ports Galveston, Houston, Texas City, and a number of small loading points. Freeport to the south, although not in Galveston Bay, may be considered part of that port area. Corpus
Christi, Ingleside, and Port Aransas are closely associated harbors in the central coastal area. On the
Mexican border, Ports Brownsville and Isabel provide ocean outlets for the highly productive Rio
Grande Valley and for northern Mexico. The Corpus Christi port area and the two port areas of the
north coastal section are connected by the Gulf Intracoastal Waterway, which also provides a sheltered
route for barges and small craft around the Gulf coastal circle from Corpus Christi to Apalachee
Bay, Florida.
The needs of the petroleum industry have influenced greatly the type of facility installed in
the port areas. All the ports have extensive installations to serve the petroleum traffic, and Port Aransas,
Ingleside, and Isabel, are "special purpose" ports, primarily designed to receive and dispatch crude oil
and liquid petroleum products. Similarly, Freeport is especially equipped for handling shipments of
sulphur as well as petroleum. Each of the port areas also has one or more "general purpose" ports
131
MONTHLY BUSINESS REVIEW
equipped to handle shipments of diversified dry cargoes as well as liquid petroleum. Beaumont, Port
Arthur, Houston, Texas City, Galveston, Corpus Christi, and Brownsville handle the principal dry
cargo movements in their areas. Ports Houston and Galveston are particularly well equipped to serve
a widely diversified traffic. Their "general purpose" facilities include extensive rail terminals, industrial
wharves and docks, capacious warehouse and grain elevators, and specialjzed loading and unloading
equipment to simplify storing and to expedite movement of agricultural produce, ores, and manufactured goods.
LOUISIANA
TEXAS
' - - -- GIULF INTRACOASTAL WATERWAY
PROJECTED EXTENSION OF
:'!'..·j1f'--- G;ULF INTRACOASTAL WATERWAY
TEXAS HARBORS
AND COASTAL WATERWAYS
GULF OF MEXICO
MEXICO
General responsibility for port operations is usually vested in a local port authority. The administrative organization of Port Houston, although more complex than that of the smaller ports, illustrates the area of responsibility and the character of functions assumed by a port administration.
The port of Houston is operated by a Navigation and Canal Commission of five members, serving
without pay, who are appointed by the commissioners of the city and county governments. This
Board of Commissioners appoints a full-time salaried general manager of the port to supervise all
activities of the navigation district, including management of the docks, loading equipment, rail
terminals, and other facilities and equipment owned by the district. The Board does not exercise
control over channel industries or privately owned terminals. However, all construction on the
navigable waters of the district is subject to its jurisdiction and, before being undertaken, must be
authorized by the Board and by the United States Engineers. The Board has general responsibility
over port traffic, including tariffs applicable to use of its own facilities, appointment of pilots, and
fixing of rules and regulations under which they operate. It also supports jointly with private interests
a port and traffic bureau to further the interests of the port. Development and maintenance of the
harbor and its channels are supported largely with federal funds under the supervision of the United
States Engineers. However, the port authority may submit recommendations for such improvements
and may undertake projects to supplement them.
132
MONTHLY BUSINESS REVIEW
The Volume and Character of the Cargo Handled at Texas Ports
A significant portion of the total cargo on the seaboards of the United States originates on the
Texas coast. In 1945, Texas ports handled 14 per cent of the cargo tonnage at United States ocean
ports and about 19 per cent of the tonnage on the Atlantic and Gulf coasts. Last year, Houston
ranked third among United States ports in cargo tonnage handled, being exceeded only by New
York and Philadelphia; while Beaumont, Port Arthur, Texas City, Port Aransas, Corpus Christi,
and Galveston were among the top 3 5 ports in the nation.
The tonnage carried by Texas ports
TABLE I
dropped markedly during the war years, as
Table I indicates. A sharp decline in nonCARGO TONNAGE HANDLED AT TEXAS PORT AREAS
military foreign trade required diversion of
1937-1946*
southwestern cotton and other agricultural
(Thousands of sbort tons)
Galveston
Sabine·
produce from foreign to domestic markets,
8~Z~{J Brownsville ~~~rlt
~~t:-l
Bay
~e::bes
Totn,1
Port
Areal
Port
Areal Port Areas Port Area' Port Areas Waterwa),1
Yoar
and these goods ceased to move in large quan412
1,021
98,436
97,415
14,151
1937
41,599
41,253
tities through the ports. Early successes of the
2,369 98,151
95,782
394
1938 38,400 42,407 14,581
547 102,233
3,125 105,358
1939 40,360 45,544 15,782
Nazi submarine campaign made tanker pas98,681
524
7,073 105,754
1940 38,619 45,357 14,181
sage along Gulf and Atlantic shores extremely
97,732 11,523 109,255
357
1941 40,313 12,644 14,418
7,157
239
56,616 14,997 71,613
1942 20,900 28,224
hazardous and forced a marked reduction in
7,691
177
46,637 14,917 61,554
1943 15,075 23,694
ship!ll.W1ts of petroleum via that route. More9,847
403
54,794 17,527 72,321
1944 17,029 27,515
78,837 15,908 94,745
855
1945 26,594 37,977 13,411
over, cargoes which were being produced near
1946 43,746 51,615 20,187 1,587 117,135 13,978 131,112
the port areas and which ordinarily would
·All tonnage handlool,.,.inc1uding e:cporta, imports, coastwise, internal, and local.
IBeawnont. Omnge, yort Arthur, and Sabine Pass.
have moved from the Texas coast, including
'Freeport, GRivcston, Houston, and Texas City.
:Corpus Christi, Ingleside, Port Aran&a8. and Port Lavaca.
military equipment, munitions, and aviation
' Brownsville a~d Port IsabeJ.
$Sabine River to Corpus Ch risti.
gasoline, were diverted through Atlantic ports
SOURCE: Commercial Statistics (of Ports), War Department. Corps of EnginCC1'1!l.
to reduce the distance traveled by convoys.
Cargo handled by the Texas harbor and waterway system declined from 109,300,000 tons in 1941 to 61,600,000 tons in 1943. A greater reduction
might have occurred had not the Gulf Intracoastal Waterway provided a sheltered route to which
petroleum and other cargoes could be shifted. Shipments on the Texas section of the Canal increased
from 11,500,000 tons in 1941 to 17,500,000 tons in 1944.
Since the end of the war, traffic at Texas ports has increased substantially. Large exports of
grains, flour, cotton, and petroleum products, destined principally for European nations, have
restored the international cargo tonnage of the ports to the prewar level. Local and coastwise shipments of crude oil and petroleum products have risen markedly as the domestic demand for fuel
TABLE II
PRINCIPAL GOODS HANDLED AT TEXAS PORTS, 1939 and 1946
(Thousands of short tons)
Commodity
-
Imports
Coastwlse-----------lnternal and lntl'!lportTotal Traffio ."":'_~==~;;~~F~o~rru~'~~~;rl~~:-~
Exporta
1939
1946
1939
1946
1939
1946
1939
1946
1939
1946
Total all commodities ........ . . .. .. . .. ... 117,135 102,233
Refined l'etroleum products .... .. . . ..... 59,264 49,372
Crude oi and asphalt ..... . . . .... . ..... 42,647 41,966
Sea Shells. . . . . . .. . . . . . . . . .. . . . .. .. . . . 4,539
2,117
666
Wheat. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,497
Sulphur.. .. . .... .. .. .. . .. . • . .. .. . .. .. 1,938
1,725
Flour. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
584
190
Cotton. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
575
890
Corn, oats, and rice.. . . . . . . . . . . . . . . . . .
416
194
Iron and steel and their products . .. .. ...
373
1,304
Nonferrous metal ores. . . . . . . . . . . . . . • . • .
207
84
Phosphate rock. . . . . . . . . . . . . . . . . . . . . . .
181
9
Bananas, other fruit and coffee........ . .
177
221
Fertilizers. . . . . . . . . . . . . . . . . . . . . . . . . . . .
151
251
Rnw cane sugar. . . . . . . . . . . . . . . . . . . . . . .
136
121
Paper and wood pulp. . .. . .. . . . . .. . . .. .
50
199
All other co=odities... . . . . . . . . . . . . . . . . . 3,399
2,924
18,937
10,978
873
3
2,481
1,016
546
575
394
85
123
..
1
110
18,497
9,428
5,816
2
666
645
69
750
84
480
8
1,752
579
7
44
592
67
1,135
12
612
73,631
41,101
31,372
9
527
38
2
84
5
175
9
101
18
129
19
5
116
3
121
94
154
19
40
..
176
56
26
35
288
72,143
37,711
30,733
13
976
121
140
95
520
71
9
38
200
98
1,363
23,976
7,118
10,402
4,537
8
395
10,457
2,221
4,805
2,103
3
246
15
357
1
6
32
1,229
104
..
4
3
7
838
SOURCE: Commercial Statistics (of Ports), War Department, Corpa of Engineers.
oils and gasoline has increased and as tankers have been shifted from transocean military service to
the Gulf-Atlantic seaboard run. The tonnage handled in the four Texas port areas in 1946 was at
an all-time high, 151 per cent greater than in 1943 and 13 per cent above 1939; and, though the
188
MONTHLY BUSINESS REVIEW
gross tonnage handled on the Texas section of the Gulf Intracoastal Waterway was smaller than
at the 1944 peak, it was still 10,850,000 tons above 1939. The increased cargo at the ports in 1946
as compared with the prewar period was largely attributable to a very marked increase in traffic
within the port areas which accompanied expansion of refining, chemicals manufacture, and other
industrial activity in the Texas coastal region. The cargo tonnage handled in internal and intraport
movements* was approximately 13,500,000 tons larger in 1946 than in 1939, whereas the volume
of coastwise cargo was not significantly greater, and total export-import tonnage was fractionally
smaller.
As has been indicated, servlcmg the petroleum traffic is an important function in all Texas
ports and the principal operation in many. In 1946, petroleum liquids accounted for 102,000,000
tons of the 117,000,000 tons of cargo handled by the Texas port system, or about 87 per cent of
the total. Crude oil and its products constituted 98 per cent of the coastwise tonnage handled at
the ports, 73 per cent of the internal and intraport movement, and 61 per cent of the exportimport cargo. The traffic in petroleum probably will be larger this year, since production from
Texas oil fields is being raised to new peaks and refineries in the coastal area are expanding and
operating more intensively in response to rising domestic demand for petroleum products.
Other minerals and raw materials used by the heavy industries of the coastal area also are
important cargoes at the ports. During 1946, the movement of seashell, sulphur, and nonferrous
metal ores totaled 6,684,000 tons and accounted for about six per cent of all cargo tonnage handled.
Seashell (often called "mudshell") is moved in internal and intraport traffic to supply needs of
cement plants, chemical plants, and large construction projects. Sulphur also enters local port
traffic when shipped to coastal chemical plants and to other loading points; but the bulk of the
movement consists of coastwise and internal shipments and exports originating at Galveston and Freeport. Metallic ores are important items in the export-import traffic handled primarily by the Galveston
Bay port area.
Agricul tural produce
comprises a large part of the
remaining tonnage and a significant part of the export
traffic. In 1946, exports of
wheat, other grains, flour,
and cotton totaled 3,996,000
tons, or about three per cent
of all tonnage handled and
20 per cent of total export
tonnage. The import tonnage, which has declined as
compared with 1939 and in
1946 constituted less than
one per cent of total cargo,
consists primarily of tropical
fruits, coffee, and sugar cane.
TABLE III
TRAFFIC AT TEXAS PORTS, 1946, CLASSIFIED BY DESTINATION OR ORIGIN
(Thousands of abort tons)
Port and Port Area
- - Foreign -:----:-.,-Coal5twise - -
Sabine-Neches Port Area ..
Beaumont . .. ..... . . .. .
Orange ... .. . . .. .. ... . .
Port Arthur .......... .
Sabine Pass ....... . ... .
Galveston Bay Port Area . .
Freeport ....... . . . ... .
Galveston .. ......... . .
Houston . . .. . ........ . .
T exas City .. . ........ .
Corpus Christi Port Arca . .
Corpus Christi. ... . .. . .
Ingleside ... .......... .
Port Aransas . ... ... . . . .
Port Lavaca ....... . .. .
Brownsville Port Area .. . .
Brownsville .. . .. . . . ... .
Port I sabel. .......... .
Grand total ports .... . ... .
Imports
Loca.l and
Exporia
Receipta
Shipments
Int rapoTt
4.4
4.4
4,105 .4
629.1
1,997.7
869.0
30,348.9
16,926.6
.0
3,476.3
1,128.7
399.4
12,767.3
1,435.9
105.8
205.3
88.3
5.0
1.4
4,195.2
7,058.1
1,514.0
1,840.6
1,656.7
88.8
95.0
.1
223.1
118.7
104.4
18,936.4
55. 7
621.8
758.4
104.5
33.5
4.4
66 .6
13,111.8
310.5
23,509.4
109.9
607.4
14,956.0
7,836. 1
15,073.3
5,133.2
415.1
9,525.0
7,289.9 43, 746.3
4,622.9 23,052.0
148.7
148.7
2,460.5 20,177.3
57.8
368.3
13.502.4 51,614.3
666.8
556.9
5,960.9
996.9
8,996.3 31,837.5
2,952.3 13,149.1
3,164.0 20,187.4
1,692.7
8,517.5
1,186.4
678.1
512.5 10,199.1
280.7
284.4
19.3
1,586.5
566.3
7.5
1,020.2
11.8
23,975.6 117,134.5
3.6
183.0
183.0
23.1
23.1
1,137.9
233.9
904.0
70,069.5
Total Traffic
Diverse raw materials
3,561.2
591.8
and finished goods other
SOURCE : Commercial Statistics (of P ort-5), 1946, War Dcpurtrncut, Corps of Engineers.
than those mentioned move
through the ports, principally
as items of export or import. They accounted for only four per cent of cargo tonnage handled in
1946; but they are important constituents of the port traffic, nevertheless, because they create demands
for various brokering and other trading services, and they supply industries and businesses with essential
materials for processing and with valuable goods for distribution.
' Internal traffic is traffic between a port and its tributary waterways; intraport traffic is traffic between various
cha nnels within a port.
134
MONTHLY BUSINESS REVIEW
The Ports in the Regional Economy
Exact measurement of the contributions of the Texas harbor and waterway system to the
regional economy obviously is not possible. The significance of the ports is indicated, however, by
the large volume of southwestern products which flows through them; by the number of persons
for whom they provide employment and the pay rolls they support; and by the commerce, industry, and capital they have attracted to the region.
The Texas harbor and coast.al waterway system carries a very large part of all freight moved
in the Southwest. The 131 ,000,000 tons of cargo handled by the system last year exceeded by nearly
35,000,000 tons the revenue freight originated or terminated in Texas by Class I steam railways.
Pipe lines to the ports collect oil from fields as far west as New Mexico; rail and truck shipments
bring wheat from the Texas Panhandle, Oklahoma, Kansas, and other states west of the Mississippi;
while cotton and other produce move to Texas tidewater from the entire southwestern region. The
major portions of the output of several basic products of the region find their way to foreign and
domestic markets through the ports. In 1946, petroleum shipments from the Texas seaboard were
equivalent to about 70 per cent of the crude oil production of the State; shipments of wheat equaled
75 per cent of the State's output; shipments of crude sulphur equaled 53 per cent of production;
and exports of cotton exceeded the entire crop produced in the State.
In performing their traffic services, the ports employ a large labor force and create a sizable
pay roll. In 1940, approximately 18,650 workers were engaged in Texas in activities closely related
to port operations, as follows:
Ship and boat building and repair. ______________________________________________________________ 2,600
Stevedoring _______________________________________________________________________.__________________ 6,9
°°
Water transportation ____________________________________________________ __________________ 9,15
°
Since that time, employment has increased in shipyards, in local water transportation, and in cargo
handling. Moreover, "white collar" activities relating to cargo financing and traffic management and
to operation of various port facilities, such as rail terminals and warehouses, require a substantial
number of workers. Conservative estimates place current employment in direct port operation at
30,000 to 35,000 persons, with a total pay roll of perhaps $90,000,000 annually. Thus the ports of
the State in the role of employer appear almost as important as petroleum refining, in which about
38,000 workers are engaged, and more important than any other single industry division except
inland transportation, construction, and food processing.
The ports also are important "investors," thereby providing a stimulating inflow of capital
to coastal communities. The expenditures on harbor and channel improvement and maintenance
along the Texas coast, mainly for dredging channels and building jetties, amounted to about
$135,000,000 through 1946, of which $55,000,000 was for maintenance. During the decade of
the 1930's, expenditures for improvement and maintenance averaged about $5,000,000 annually.
Information concerning outlays on construction and maintenance of docks, terminals, elevators,
and other essential port facilities, which usually are financed by private organizations or by local
government instrumentalities, is not available. Such data as can be obtained indicate, however, that
the total investment is very -large, and that it has influenced considerably the magnitude and character of construction activity in the port cities. The Port of Houston estimates that the investments
in private and public industrial wharves and docks, terminals, warehouses, dry docks, and other facilities along its ship channel amount to approximately $116,000,000 . The assessed valuation of the land
and other taxable properties located within the principal navigation districts in Texas is approximately
$1,125,000,000, and their actual value probably exceeds $2,000,000,000.
The indirect contributions which the ports have made to the economy by attracting industries
are far greater, however, than the contributions to community income and wealth arising directly
from transportation services rendered by the ports, or from port development and maintenance.
MONTHLY BUSINESS REVIEW
135
The nearness of the ports to abundant reserves of natural gas, crude oil, sulphur, limestone, and timber
has led heavy industries to locate strategically along the tidewater from Orange and Port Arthur on
the north to Brownsville on the south, in order to combine the advantages of ready access to raw
materials and fuel with cheap water transportation. In the selection of sites for chemical plants,
refineries, and other industrial facilities which have been built on the Texas coast, the total advantages
of a location have usually determined the choice; but access to water transportation undoubtedly
has been one of the decisive factors.
Plants which process large quantities of bulk or liquid materials, or which ship bulk dry cargo
and large volumes of liquids, find location on tidewater an important asset, since such cargoes are
usually shipped at less cost by water than by rail or truck. Refineries, chemical plants, cement mills,
nonferrous metal processing plants, and iron and steel plants have been established on the Texas seaboard in part to benefit from coastwise or transocean movement of their raw materials and products.
The interconnecting channels between harbors and within port areas also attract plants, since they
permit "traffic liaison" between coastal industries. Heavy freight movements between factories, warehouses, and shipping points have been facilitated by the network of channels along the coast and
near populous areas. Movements between private docks, often by company-owned barges, are accomplished at low cost; and since they usually need not be completed on a fixed schedule, may simplify
handling by providing storage space on the carrier. Organizations which rely upon other plants
along Texas coastal channels to supply them with bulky materials, therefore, seek channel-side locations. In addition, the port areas are logical sites for plants to fabricate or process materials before
export or after import. Refining of metal ores, processing of foreign fruits and other foods, and fabrication of foreign and domestic products before trans-shipment are important port-area activities.
The extent of the industrialization of the
Texas port areas is indicated by Table IV. The
EMPLOYMENT, INDUSTRIAL ACTIVITY, AND POPULATION eight coastal counties which are served by
IN PRINCIPAL TEXAS PORT COUNTIES
large ports accounted for 45 per cent of the
(Doll'l, f amounts in thousands)
value added by manufacture in Texas in 1939,
Mfg. Wage Value Added by Wnr Industry
. .IS
Population
Earners
Manufaotu,"
Facility
the 1atest year f or w hich such'In f ormatIon
Port ArCllRlld County
1940
1'3'
1939
Awards
I
fi
f
t h ese
Sabine-Keches: Jefferson.. 145,329 12,208 $ 69,177.7 $ 201 ,432 available. The re ative signi cance 0
527 $ 1,009.8 $ 12,936 counties probably has increased considerably
Orange...
17,382
Brazoria.. . 27,069
106
Galveston:
~6\ ~ 16g:~~l since that year. It will be observed from the
Chambers .
7,511
73 $
Galveston.. 81,173
3,131 :; 13,696.3 $ 104,598
table that awards for industrial war facilities
Harris. . .. 528,961 22,765
1,232 ~1°~:1~:~ : 3~:~~~ in the eight counties totaled $878,112,000 and
Corpus Christi: Kueees.... 92,661
Cameron. . 83,202
853 $ 2,514.8 $
Brownsville:
823
accounted for about 64 per cent of the total
Total, Eight Counties. .
983,288 40,895 $203,183.2 $ 878,112
'1"
. T ex as. A mong t he
awar ds f or such f aClltles
In
T otal, T exas ............. 6,414,824 126,992 5453,105.4 $1,376,482
Eight Counties as per cent
war plants built in the coastal area were
63.79
32.20
44.84
15.33
of Texas ...... . ..... .
high octane gasoline refineries, synthetic rubN.A.=Not available.
SOURCE: United States Department of Commerce and War Production Board.
ber, nonferrous metal processing, chemical
and steel plants, shipyards, and dry docks.
Although a few of these facilities are closed and several are operating on reduced schedules, many
have been expanded since the end of the war and probably will continue to grow.
TABLE IV
The area along the Texas coast is now one of the important industrial regions of the nation.
About 25 per cent of the refining capacity of the United States is located on the Texas seaboard.
Extensive chemical industry developments have established the central and north Texas coast as
heavy chemical basins, and chemical plants which are planned for the Brownsville port area will
extend the industry to the Mexican border. Magnesium plants have been located on the coast at Freeport to use salt water as a primary "raw material," while steel plants have been established at Houston
to be near a large local market and close to ocean transportation. Agricultural produce of the Southwest also is processed on the coast in part to benefit from water transport; wheat milling and rice
refining are conducted on a large scale in the north coastal area, while the largest grain sorghum
processing plant in the nation is being built at Corpus Christi. In addition, sugar refineries, coffeeroasting plants, pineapple quick-freeze plants, and a tin ore reduction plant are located in the Galveston Bay region, and processing of foreign products is conducted on a smaller scale in the other
port areas.
136
MONTHLY BUSINESS REVIEW
Port Prospects
From the foregoing, it is apparent that important advantages have accrued to the Southwest
from the port system on the Texas seaboard. The coastal cities, naturally, are the principal beneficiaries of the ports' services; but nearly all of the Southwest shares directly or indirectly in the benefits
arising from development of the ports and expansion of their functions. Consequently, future development and utilization of the ports and port areas should be matters of general interest in the region.
The large volume of cargo tonnage carried by the harbor and coastal waterway system since
the end of the war almost certainly will continue for several years and may increase considerably
if coastal industries grow and the national economy continues at a high level of activity. Expansion
of the chemical industry, paper manufacturing, steel fabrication, and cement production in the
Texas seaboard area, if continued, will create additional tonnage for local and coastwise carriers.
Moreover, should the unprecedented demand for petroleum products which has developed during
the first eight months of this year become greater, as is generally expected, more intensive use of
ocean tankers and coastal barges will be required in the local traffic between refineries and loading
points and on the long haul from Texas to the East coast. The prospects for expansion of intraport,
internal, and coastwise traffic, therefore, are particularly encouraging.
TABLE V
The outlook for the export and import traffic perhaps
is less optimistic. Since the end of the war, the interVALUE OF EXPORTS AND IMPORTS
national
traffic at the ports has reflected the crucial needs
TEXAS PORTS·
of European nations for basic foods for their people and
(Thousands of dollnrs)
primary raw materials and machinery for their industries.
ImpOrts
E:zporta
$27,500
1938
$ 361,100
As Table V indicates, the dollar value of exports from
28,800
1939
338,300
the Sabine and Galveston customs districts totaled $838,30,700
242,800
1940
50,600
1941
118,500
000,000 in 1946, and thus far this year exports have been
74,000
1942
152,900
maintained at an annual rate in excess of $1,000,000,000,
41,800
1943
191,500
66,000
1944
291 ,700
which is about three times the annual value of exports
46,900
473,800
1945
62,900
838,000
1946
from the Texas coast in the years just before the war. The
Jan.-Mar. 1947 (annual rat e) 1,162,400
78,400
cargo tonnage exported during 1946, however, was only
-Sabine (Port Arthur) and Galveston Customs Distric:ts.
a little greater than in 1939. Available data indicate that
SOURCE: United States Department of Commerce.
large shipments of wheat, flour, and cotton may raise
export tonnage in 1947 above the 1946 level, and that
imports may be expanding slightly as foreign economies restore their agriculture and industry and
as shipping routes are extended. But, after the first stages of rehabilitation abroad, a substantial
increase in the export-import volume of Texas ports above prewar levels probably will be sustained
only if a healthy commercial intercourse among nations develops. The magnitude and composition
of the international cargoes handled by Texas ports depend, therefore, upon such complex and, at
this time, unpredictable influences as the rapidity with which the productivity of foreign agriculture
is restored; whether dollar balances of foreign nations are depleted; the liberality with which foreign
credits are advanced by the world financial institutions and the United States; the character and
success of trade agreements among nations; and the tariff structures and exchange regulations which
are adopted. If an environment favorable to foreign trade is established, a more vigorous and diversified international traffic probably will develop on the Texas seaboard.
More varied as well as larger tonnage at the ports seems likely to develop. Texas ports are
engaged essentially in one-way traffics, as has been indicated, shipping petroleum and agricultural
products abroad and up the coast, and handling only small imports and coastal receipts in return.
The multiple-cargo traffic handled in such ports as New York and Philadelphia, which supports vigorous commercial activities in those areas, has not been duplicated in Texas ports, except on a limited
scale at Galveston and Houston. Movement of most dry cargoes requires a greater variety of services
and a larger number of workers per ton than transportation of liquid petroleum, particularly when
137
MONTHLY BUSINESS REVIEW
the cargoes enter into foreign commerce. A more varied cargo tonnage would be desirable, therefore, since it would increase business and employment opportunities in the 'coastal region. It seems
reasonable to expect that as diversification of Texas industry proceeds, port cargo also will become
more diverse. The growth of the chemical and refining industries will not contribute significantly
to diversification of port traffic, since the major portion of their products will be liquids similar
to those which constitute nearly 90 per cent of the tonnage now handled. However, expansion of
oil well supply and other metal products industries, nonferrous metals processing, paper manufacture, and various fabricating industries in the coastal area and the Southwest will result in a more
varied and perhaps more valuable cargo movement through the ports.
The character of the ports' activities also may be
diversified by redevelopment of their passenger services.
As Table VI indicates, 210,000 persons debarked or
embarked at Galveston and Houston in 1930; only 2,500
in 1946. The decay of this traffic during the 1930's and
the following war period deprived the ports of a lucrative commerce. As ocean travel increases, Texas ports can
share in the traffic if they are equipped to serve it and will
take the necessary steps to attract it.
TABLE VI
PASSENGER TRAFFIC AT TEXAS PORTS·
Yea'
1930t
1931
1932
1933
1934
1935
1936
1937
1938
1939
1940
1941
1942
1943
1944
1945
1946
Tolal
221,820
99,575
70,112
42,441
64,085
52,510
24,929
29,744
26,138
9,572
7,070
465
164
27
48
233
2,565
---Number of Passenie....
ra--Galveston
HoU!1:on
Otber Porta
71,161
54,738
45,935
23,493
39,383
44,062
10,296
8,579
8,863
9,112
1,431
411
129
9
35
123
1,343
139,233
44,618
23,964
18,716
24,463
8,194
14,437
20,823
16,996
82
5,271
39
15
18
11,426
219
213
232
239
254
196
342
279
378
368
15
20
Further development of Texas harbors, waterways,
port facilities, and port services will be necessary if traffic
is to be expanded greatly. Ports attract cargo when
equipped to handle it more satisfactorily than alternative
9
4
carriers. Adequate rail terminals, multipurpose loading
68
42
512
710
devices, modern docks, capacious storage facilities, and
efficient traffic management may be more important in
-Excludes ferry traffic wiL-hin the ports.
tlneludes tarae numbers of passengers on "excursions."
attracting business than the size of the harbor or the disSOURCE: Commercial BtatiJtics (of Porta), War Department, Corp' of
tance from point of discharge. World War II interrupted Encineers.
the growth of the Texas harbor and waterway system.
Harbor and channel improvements were delayed, and
development programs which might have been undertaken during a period of peace were not initiated.
Construction of shipyards during the early war years in the Galveston Bay and Sabine-Neches port
areas provided facilities which will be valuable port assets if ocean traffic expands greatly, but construction of many other facilities, such as rail terminals, docks, and warehouses, was deferred, and
the total additions to port structures and equipment during the 1941-1945 period were small. The
harbors and facilities on the Texas coast apparently have handled their postwar loads efficiently, but
additional improvements will be necessary if the ports are to expand their services significantly.
Channels in many of the ports must be deepened before the faster, larger tankers and merchant ships
can use them. Additional specialized equipment is needed in the port areas to handle diversified dry
cargoes and to counteract the rising labor costs of loading and unloading. Moreover, additional piers,
docks, rail terminals, and other installations will be required to serve plants which are to be built
in the region.
Plans to develop the port and waterway system are being programmed and initiated. Facilities
at Brownsville will be expanded to enlarge its functions as a multipurpose port and to serve new
chemical plants in the area; extensive channel and facility improvement programs are planned at
Houston, Galveston, and Beaumont; and modern facilities will be built at Texas City to replace
those destroyed this year. Expenditures on facilities at the larger ports during 1947-1948 probably
will approach $10,000,000. The projected extension of the Gulf Intracoastal Waterway from Corpus
Christi to Brownsville and Harlingen will provide the intracoastal connection between southwest
Texas ports. A more extensive program than that planned may be required, however, if a large
volume of general cargo is attracted to the ports. Fortunately, the port authorities appear in excellent positions to finance improvement programs; for in 1946, the bonded indebtedness of the principal navigation districts in Texas was somewhat less than $13,000,000, as compared with an assessed
valuation of taxable properties within the districts totaling about $1,125,000,000.
138
MONTHLY BUSINESS REVIEW
Review of Business. Industrial. Agricultural. and Financial Conditions
DISTRICT SUMMARY
Dry, open weather during most of July and August was favorable for harvesting operations and for the cultivation of
growing crops. Drought throughout most of the district and a
series of heat waves, however, caused sharp deterioration in the
condition of the ranges and of bte planted corn and other growing crops. The yield of cotton harvested in the Rio Grande Valley and south Texas during July and the firSt part of August
was generally good, but the condition and prospective yield of
the crop in most other sections were being affected in varying
degree at mid-August by drought and intense heat.
The dollar volume of sales of district department stores during July was slightly lower than for the same month a year ago.
The decline from the total for June, however, was no more than
seasonal, and the outlook for the fall of this year is described
by executives of several of these stores as favorable for a steady
volume of business even though total sales may not exceed the
high level achieved during the corresponding season of last year.
Consumer spending continues at a high rate, with an increased
ratio of expenditures going for automobiles, home furnishings,
other durable goods, and food.
Activity and output of representative manufacturing establishments in the district arc holding generally steady, despite
shortages in the supply of sheet steel, some small tooled products, and high-grade cotton fabrics. Moderate expansion of employment in apparel plants is forecast for the fall, along with a
seasonal increase in the activity of food processing establishments. The value of construction contracts awarded showed a
moderate increase in July, and the production of crude oil and
the demand for oil and its products continued at near record
levels.
BUSINESS
Sales of department stores in this district during July fell
slightly below those for the corresponding month a year ago,
reflecting, in part at least, the effect of the increase in dollar
sales volume in relation to unit sales which occurred in July
1946 as the result of sharp price increases following the suspension of price controls. The trend of sales in weekly reporting
stores during the first two weeks of AugllSt suggests that dollar
sales month by month for the remainder of this year may suffer
somewha t by comparison with those of the corresponding
months of last year, when sharp rises in the prices of nearly all
commodities pushed dollar volume up at a rapid rate. Compared
with June, however, sales in July declined no more than seasonally, the unadjusted index dropping only three per cent. The
cumulative gain in sales for the year through July over the first
seven months of last year was five per cent, down one point
from the figure for the first six months. January-July sales in
1946 exceeded those of the same period in 1945 by 30 per cent.
From the foregoing developmen ts in departmen t store sales
volume, it is obvious, when today's high price level is taken into
consideration, that unit sales have decreased significantly and
that the physical volume of goods passing from producers to
consumers through department store trade channels is considerably smaller, though doubtless more diversified and of better
quality, than it was a year ago. However, most department store
executives recently interviewed regard the slowing down which
has occurred in the rate of spending for the soft and semi-durable goods which constitute the bulk of their merchandise as a
natural consequence of hi gh food prices and of the increase in
supply of automobiles and major household appliances, for
which there is still a strong demand. For the most part, t hey feel
that conditions in their line of trade have now achieved a stability which, with the supporting influence of good fa ll and
Christmas buying, will endure at least till the end of 1947.
A moderate increase of eight per cent in total stocks of department stores at the end of July as compared with a year ago
and a decrease of 44 per cent in the volume of orders outstanding
during the same period indicate the success of store executives
generally in controlling and balancing their inventories. In fact,
nearly all the executives of department and apparel stores recently interviewed described the present condition of their
merchandise stocks as very satisfactory, especially from the
WHOLESALE AND RETAIL TRADE STA TI8TtrS
PercOlI1 '\gO challICe ill - - -- -
Retail trade'
Oepnrtment storee:
Total lIth Dist.. . ..
%!If~~ ?b.~t~ : ::::
Fort. Wortb ... ... ..
Houston .......... .
San Antonio .... . ..
Sbre..-eport, La .. ...
Other cities ... .. . ..
Retail furniture:
Total 11th Dut. ....
Dallaa . . ... . . .....
HoUlton .. .. .......
Port Arthur . ......
San Antonio . ......
Number
of
reporting
firms
4~
4
7
4
7
5
3
18
45
••
3
4
Net B811l9-J ~n. 1 to
Juiy 1947 rrOUl
July 31,1947
Julv
Juue
rr,IO\ 1946
HJ47
1946
-3
-I
+5
+12
+7
+ 1
-2
-4
+1
-I
+7
+7
-3
+8
-I
-2
-8
+6
-12
+8
+5
-3
-I
+5
+3
+4
+11
+30
- 3
3
+5
6
+11
-
Storke t- Jul}' 1947 from
July
June
1946
19H
- I
+8
+23
-9
- I
+2
+30
+3
+4
- 4
+1
-I
+14
:':" i
+51
+40
-5
-
I
I
Wholesale trade: Automotive 8uppliea
3
+8
+10
- 3
Drugs... . . . . . . . ...
3
No ehg.
+18
. .
....
Groceries .. . , ..... ,
21
+20
+ 7
+16
+40
+ 5
Hardwa.re.........
8
8
- II
+24
+68
- 3
Tobaeco& produc19.
I)
-12
+24
- 3t
40
· Compiled by United States Burelu of Censu8. Wbolesale trade fi~ ret prelimiMry.
tswob at eod of mouth .
tCbnugc IC98 thlill one·halr of Doe per cent.
+
INDEXES OF DEPARTMENT STORE SALF.8 AND STOCKS
July
19(7
Oi8trict .... .
Dallas .. .. . .
Houston .... .
288
267
305
Daily uerage sale8-f1935-1939 -tOO}
Unadjusted •
Adjusted
July
May
Juno
May
July
June
1{)47
It}47
1047
1046
1947
1947
361r
3i{l
307r
356
2!H r
3iS
352
343
273
371
3G5
289
377
37Sr
329r
3iO
305 r
386
810<100- (1935-1939 -1(0)
Adjustro
Unad iusted·
May
July
July
JUlie
May
July
June
194i
1946
1047
1947
1947
1947
1947
2;6
Sl6r
2i2
308
333r
298
District .... . 299
·Uoadjusted (or seD80ual vnriatino.
r-Revised.
July
1946
383r
379
3n r
July
1946
252
standpoint of their achievements in cleaning out practically all
wartime substitute merchandise or other slow-moving goods.
To accomplish this, they had resorted to clearance sales and
mark-downs of prices ranging from moderate to drastic. As
for present buying policies, most of these executives indicated
that they are buying on shorter commitment and ordering in
smaller volume than during the war, when it was customary to
order much more than the merchant expected to receive by delivery date. It is now possible, they report, in many soft-goods
lines to supplement pre-season orders with fill-ins of merchandise which becomes depleted during the season. Compared with
a year ago, the number of scarce items has declined sharply.
Among soft goods high-grade men's suits and shirts, some types
of women's apparel, and such household staples as muslin and
sheeting are the principal items currently reported as hard to
get. An increase of 17 per cent from June to July in department
store orders outstanding, the second largest month-to-month
increase in more than a year, apparently reflects both the moderate level of present inventories and a normal program of stock
en largement in anticipation of good autumn sales.
139
MONTHLY BUSINESS REVIEW
N et sales of reporting furniture stores in the district during
July showed a slight increase over those of the same month last
year but declined by the same percentage in comparison with
June of this year. Ratios of cash and credit sales to total sales
were 18 and 82 per cent, respectively, as compared with 23 and
77 per cent in July 1946. End-of-month inventories of these
stores exceeded those of the same date last year by 51 per cent
but were down five per cent from the end of June.
Furniture store executives contacted in recent interviews
anticipate fair to good business for the remainder of the year.
Sales of furniture alone may fall somewhat below those of last
year, but stores with full stocks of household appliances expect
to equal if not exceed the total sales of last fall.
Ratios of collections to accounts receivable at furniture and
department stores indicate that the growth in volume of credit
sales is being accompanied by a gradual lengthening of the
average collection period on both charge accounts and instalment contracts. The collection ratio for both types of accounts, however, is still much higher than in prewar years.
Anticipated production in Texas is placed at 3,200,000 bales, or
almost double the 1946 crop of 1,669,000 bales and slightly
above the 10-year average of 3,021 ,000 bales. The estimate of
8,156,000 acres of cotton for harvest in Texas this year is 36 per
cent above last year's acreage and greater than in any other year
since 1940. The indica ted yield of 188 pounds of lint per acre
this year may be compared with 134 pounds last year and with
a 10-year average of 168 pounds per acre, A Louisiana crop
of 525,000 bales, forecast on August 1, although 18 per cent
below average, more than doubles the crop produced last year,
due largely to an increased yield estimated at 293 pounds of lint
per acre, compared with 148 pounds per acre harvested last year.
In Oklahoma the crop was estimated at 300,000 bales, compared
with 262,000 bales produced last year and with a 10-year average of 568,000 bales. Both the acreage and the indicated yield
per acre in Oklahoma arc somewhat above those of last year,
CASH FARM INCOlfE BY MAJOR I NCOME GROUPS FOR THE STATES OF THE
ELEVENTH FEDERAL RESERVE DISTRICT, 1946 COMPARED WITH 1945
(Thousands of dollars)
Liveatock: and
CroP!
111,453
-1946 ..... . .. .. ...... .. .
89,648
1945 .. .. ...... ........ .
168,722
-1 94e . ............... . . .
186,582
1945•••.• .•. •••. •••••.•
53,888
New Me:rico--1946 . . . ..... .. . . . ..... .
41 ,054
1945 .. .. .... ...... .. .. .
208,6GB
Oklahoma -1946 .................. .
197,775
1945•.• . •. •. •••••• ••.• .
707,830
T....
-1946 .••••••• , ., .•• , .• . •
1136,288
1945 •.•. •. •. •.•. •.• ••••
Five .tates -11146 . . . .. . . . . ... . ... . . . 1,200,568
1945 . ••• •••••••••• ••••. 1, 151,S47
Alisona
Hot, dry weather over most of the district during July and
early August was favorable for harvesting operations but unfavorable for ranges and pastures, and caused deterioration of
late planted and other growing crops. Scattered showers in
early August checked drought damage in some areas of Texas,
while minor crop losses resulted from storms in the Coastal Bend
and Lower Valley areas. Due to sharply reduced acreage as compared with last year, a low production of grain sorghums in
Texas was indica ted by the crop forecast of August I. The forecast of the corn crop was reduced considerably from that of a
month earlier, and wheat product ion estimates were lowered
somewhat when yields were found to have been slightly below
expectations. Range feeds were dry and cured throughout most
of the grazing areas of the district at the beginning of August,
but subsequent showers revived grasses in scattered localities.
In spite of supplemental feeding, livestock in many dry areas
have lost some weight.
CROP PRODUCTION- (Thousand, of bushels)
Winter wheat . . . . . . . . . . ..
Corn . .. . . . . ... . . . . . . . . . .
Oata.. . . . . . . . . . . . . ... . . .
Barley . .
..... .......
COttonl·· · · ·······.·· ...
Tame hayt ..............
Potat0e8, Iriah . . .........
Potatoell. aweeL .... , ....
Ri ce ... . ... ..... ... ... . .
A...·erage
1936-45
41.287
71.9113
33.236
3,913
3,021
1,149
4,009
4.828
14 .8i7
Te...
Estimated
1946 Aug. l,1 947
62.916 129.420
55,01 2
50,193
36,3&6
31,248
2,610
2.572
1,669
3,200
1.2113
1,137
5,883
4,488
6,570
5.270
17,716
19,404
Government Total farm
payments
iacome
58,008
3,247
172,798
51,31 0
2,675
143,1133
82, 116
12,329
263,1 67
72,454
12,7g6
27 1,832
92,530
4,136
150,554
78,694
4,336
124,084
276, 128
17,741
502,535
477,066
260,722
18,569
679,765
40,318
1,427,922
l ,315,43i
637,721
41 ,428
1,188,1137
77,771
2,516,976
1,100,901
79,804
2,332,052
livestock
AGRICULTURE
St.'\tes in Eleventh Diatrict.-Average
1936-45
102.467
124 ,624
113,484
11 ,617!
4,529!
3,467
9,576
13,753-
36,120"
Estimated
1946 Aug. l,1947
154,a93 244,492
98,502
90,1 11
65,022
65,374
005
8,
9,058
2,478
4,385
4,011
4,054
11 ,839
9,378
17 ,89013 ,520-
1
40,3926
1
41,9426
·Figures are combined totals for five states lying wholl),. or partly in the ElevenLh Ferleral
R6IIf!.rve Di.strict: TeXAS, Arizona, Louisia.na, New Mexicoband Oklahoma. §Tn thousands or
bales. tTIl thouMnds of tons. ~Arizona. New Menco, klahoma, Rnd TeXM. -Louisiana,
Oklahoma, and TeX&!. 6u,uilliana and Tev.s.
SOURCE: United State! Department of Agriculture.
As harvest of the record T exas wheat crop was completed,
yields were found to average about 18 bushels per acre, or a
bushel below earlier expectations. The result was that production estimates were reduced to 129,420,000 bushels, compared
with a July 1 estimate of 136,610,0 00 bushels and a production
last year of 62,916,000 bushels.
The August I report of the United States Department of
Agriculture estimates the United States 1947 cotton crop at
11,844,000 bales, compared with a crop of 8,640,000 bales in
1946 and a 10-year (1936-45) average of 12,390,000 bales.
Louisiana
producta
SOURCE: United States Department of AiricuJture, Bureau of Agricu1tural Economies.
Cotton in most areas of Texas suffered from lack of moisture
during July, except in the High Plains and the Low Rolling
Plains. Harvesting proceeded satisfactorily in southern Texas
during the month but was interrupted in the Coastal Bend and
Lower Valley counties in early Atlgust by heavy rains, which
also caused considerable loss in quality and some loss in quantity
of open cotton in the fields. In most other areas of Texas the
need for moisture increased during the first half of August, and
early cotton matured rapidly, with excessive shedding of young
boHs and premature opening of grown boHs. Infestations of insects remained comparatively light in the State as a whole.
Prospective yields of late planted corn were seriously reduced
by dry weat her during July, and the August 1 product ion forecast of the Texas corn crop w as 50,193 ,000 bushels, compared
with a forecast of 53 ,235 ,000 bushels on July 1. The estimated
production this year may be compared with a harvest of 55,012,000 bushels last year and a 10-year average production of
71,963,000 bushels, The estimated yield of 16.5 bushels per acre
is slightly below last year's yield, but abov'e average.
This year's acreage of sorghum for grain, estimated at 3,506,000 acres, is 24 per cent below that of last year, due principally
to increased plantings of wheat and cotton, particularly in
northwest areas. The August I forecast of production was
placed at 61,355,000 bushels, which , although above average,
is far below tbe 73,742 ,000 bushels produced last year. Growing conditions for grain sorghums were generally unfavorable
during the first part of August, and the late crop was in need of
rain. Harvesting was about completed in the southern counties
of Texas by the first of August and was under way in northcentral and some northwest counties.
Production of hay this year, estimated at 1,310,000 tons on
August 1, is about three per cent below average. Broomcorn
production, estimated at 4,000 tons, is only about two-thirds as
140
MONTHLY BUSINESS REVIEW
large as last year's crop and is 1,000 tons less than the 10-year
average. Harvest in all important producing areas was practically completed by August 1.
The Texas peanut crop for 1947 was estimated On August 1
at 338,400,000 pounds, and the acreage for harvest at 752,000
acres. The production expected this year is below that of last
year but far above the 10-year average. The indicated 450pound yield per acre, though slightly above average, is considerably 'below the yield of 515 pounds per acre last year. Harvest
was under way in southern counties on August 1, and early
August rains were helpful to the late crop in these counties, but
in all other areas, the crop was deteriorating, and rains were
badly needed. The year's pecan crop in Texas, which on August
1 was expected to aggregate 21,000,000 pounds, is seven per
cent below the 1946 crop and 18 per cent below the 10-year average.
The forecast of the 1947 Texas rice crop was for 19,404,000
bushels, compared with 17,716,000 bushels last year and a 10year average production of 14,877,000 bushels. The indicated
yield of 44 bushels per acre is a bushel above that of last year,
but four bushels below average. There has been a lack of irrigacion water in some areas, but apparently this nas not had serious
consequences. Harvest of early varieties was under way at the
first of August.
During August harvesting of potatoes, cantaloupes, and
watermelons progressed rapidly. The Texas Irish potato crop,
estimated at 4,488,000 bushels, is only about three-fourths as
large as the crop produced last year, but about 12 per cent above
the 10-year average. The August 1 forecast of Texas sweet potato production for 1947 was lowered to 5,270,000 bushels
from 5,580,000 bushels forecast a month earlier, as lack of rainfall reduced July 1 prospects. This estimate is above average
production, but is 20 per cent below last year's crop. Texas
grapefruit and oranges held up well during the critically dry
period in July, and since th e heavy rains in the Lower Valley
early in August, conditions have been favorable for the developmentof the 1947-48 citrus crop.
Ranges over most of Texas deteriorated rapidly during July
and the first part of August. Dry conditions were reported as
centered in the southcentral counties at the beginning of July,
but during the month, with rainfall generally far below normal,
they spread over most of the state, excepting some northern
Panhandle counties. In south Texas, however, range grass was
revived by rains early in August, and range feed in northern
Panhandle counties was generally plentiful. In most other
parts of the state, cured range feed was critically short on all
heavily stocked ranges. The dry range conditions extended into
the southern parts of Oklahoma, New Mexico, and Arizona.
Under these conditions cattIe and calves have held up only fairly
well throughout the district. Supplemental feeding has been
necessary in many areas, and considerable shrinkage in the
weight of cattle was reported from New Mexico, Texas, and
Arizona during July and early August. There appear to have
been no forced marketings of cattle because of the dry conditions during July, but it was expected that ranchers would
market earlier than usual if drought continued. Sheep and lambs
on dry rmge feeds in the Edwards Plateau and eastern TransPecos areas were in only fair condition at the end of July, but
early August rains were expected to relieve the situation in those
areas.
Reduction in the number of breeding ewes during last year
and unfavorable weather conditions, including two winter
storms, are reflected in the small Iamb crop in Texas, estimated
by the United States Department of Agriculture at 3,752,000
lambs. This year's crop is 17 per cent below that of last year
and is 15 per cent below the 1936-45 average. The 1947 Texas
wool clip is estimated at 63 ,69 1,000 pounds, compared with 70,695,000 pounds in 1946. The number of sheep shorn, estimated
at 8,272,000, is about 10 per cent below the number shorn in
1946 and about 16 per cent below the 10-year average.
LIVESTOCK RECEIPTS-(Number)
Cattle ...... .
Calves . .
Hogs .. . .... .
Sheep ...... _
---Fort Worth ---~--,-- Sao Antonio - - July
July
June
July
July
June
1941
1946
1941
1947
1946
1947
111,675
111,004
112,923
47,564
52,820
42,408
35,228
53,699
33,840
26,961
27,98!
21,983
34,300
33,141
38, 188
6,222
10.6.5
5,415
198,532
276.672
401,016
52,706
78,262
12,834
COMPARATIVE TOP LIVESTOCK PRICES
(Dollal'l per hundred weight)
_ _ _ Fort Worth-:----:-:-- San Antonio - - July
July
June
July
July
June
1947
1946
1947
1947
1946
1947
119.00
126 .50
124.50
SI9.00
12'.00
Deef steen . . ...... . ... . . 12.1.50
Stocker steers . .... . ..... .
l~:gg ~gg 20.40 . i8:60 22.50
lIei£ers and yearling! . ... . ~Ug
16.50
19 .50
18.00
14 .00
18.00
Dutcher rows . .. . . .... . . , 19 .00
18.36
25.00
23.00
18.50
23.50
Calves ................. . 1U.50
2' .50
26.00
27.00
21.00
24.76
liogs ... .. . . . . ..... ..... . 27.76
19.00
25.76
21.76
17.50
21.50
Lambs ... . ...... . . ..... . 24.00
Total livestock receipts at Fort Worth and San Antonio mar·
kets during July were about 30 per cent below those of the previous month, due largely to seasonal declines in receipts of
sheep and hogs, and were 22 per cent below the receipts of July
1946, when marketings were especially heavy following the suspension of price controls.
Prices of most Texas farm products advanced during the
month ending July 15, according to the Mid-Month Local Price
Report of the United States Department ·of Agriculture. Notable advances occurred in prices received for wheat, corn, rice,
barley, cotton, chickens, eggs, dairy products, and all meat animals except lambs. There were significant declines in prices received for grain sorghums and cottonseed. Reports from central
commodity markets around mid-August indicated that prices
of corn and grain sorghums had made moderate gains since July
15, while the price of cotton had shown a marked decline and
wheat prices remained near the level of a month earlier.
FINANCE
Reports of earnings and dividends of member banks in the
Eleventh Federal Reserve District as of June 30, 1947, show
that net profits of all member banks in the district amounted to
$17,533,000 during the first six months of 1947, as contrasted
with $20,033,000 for the same period in 1946. Reserve city
banks of the district reported net profits for the period amounting to $6,925,000, or $2,510,000 less than were reported fot
the comparable months of 1946. On the other hand, net profits
of country banks reflected a slight increase, rising by $10,000 to
$10,608,000.
Perhaps the most significant change reflected by these most
recent reports is the shift which has been taking place in the
relative importance of earnings derived from interest and discount on loans and from interest and dividends on securities.
During the first six months of 1947, interest and discount on
loans rose to $29, 165 ,00.0, or $6,77 1,000 more than was earned
from that source during the comparable period in 1946. In contrast, earnings from securities were reported to total $18,823,000, or $2,338,000 less than in the comparable period of last
year. As a consequence of these changes, interest and discount
on loms accounted for approximately 51 per cent of total current operating earnings during the first six months of 1947 for
111
MONTHLY BUSINESS REVIEW
both country banks and reserve city banks in this district,
whereas earnings from securities represented about 32 per cent
of total current operating earnings of the country banks in the
district and about 34 per cent of such earnings of the reserve
city banks. These movements, of course, reflect the substantial
rise which has occurred in total loans, as member banks have
met the increasing requirements of business and other borrowers, and the decline in the volume of United States Government
securities held by member banks resulting from the Government's debt retirement program.
During the five-week period f rom July 9 to August 13,
principal changes in the condition of member banks in the leading cities in the district, as reflected by weekly reports, show an
increase of $39,825,000 in total investments, a substantial increase of $54,73 5,000 in demand deposits adjusted, and an increase of $15,051,000 in total loans, of which more than twothirds was accounted for by an expansion of commercial, industrial, and agricultural loans.
The increase in total investments of the member banks in
the leading cities of the district during the past five-week period
was accounted for largely by an increase in holdings of Government securities of all types. Although during this period member banks added to their holdings of Treasury bills, certificates,
and notes in moderate amounts, the principal increase occurred
in holdings of United States Government bonds, which rose by
$22,912,000.
CONDITION STATISTI CS OF WEEKLY REPORTING MEMBER BANKS
IN LEADIN G CITIES-Eleventh Federal Reserve District
(TboUIlanda of dollanl)
August 13,
1947
.... $2,1 42,228
T otalloana and investmentl
August a ,
1946
$2,282,67 1
July 9,
1947
S2,087,352
Total\oa.D!!J........... . ........................
837,430
760,fAi
822,379
Comm ercial, industrial, and "gricultu mlIoaIlB....
Loans La brokcl1I and dealcnI in securit ies........
Otber loans for purchlu ing or carrying ~u rities. .
Re&1 eatate 108 M. . . . . . . . . . . . . . . .
557,226
6,805
M, lli8
75,645
148
128,448
1,304,708
25,984
229.083
127,39 1
820,602
101,738
47Q,250
304 ,546
1,797,207
462, 135
10,003
127,783
M7.007
6,021
66,624
73,288
149
129,284
1,264,973
20,805
227,821
122,488
797,690
96,169
470,840
283,447
1,742,472
Loe •• '" boob.... . ............... . ......... .
All other 108na .. .... ... . . . ....... . . . . . . . . . . . .
T otaJiuvestmcnLs .............. . ...... " ., .. . ..
......
U. S. T reasury bills
U. S. T_ u,y ,,,''is,,,,tce of indebLed. "'......
U. S. Trea3ury notes ... .......................
U. S. Government bonds (inel. gtd, ob!.).......
Other securities .. . . ........ . ... .............
Reserve:! wit h Federal Reserve Dank.
Balances with domestic banks. ....... ...........•
Dema nd depoai~--adjUBted· ................... ..
~~rt!GO~e~meni dePOOi'is:::
:: .:::::::::::
. .. ...... .
3~~:gI~
53,453
378
106,889
1,522,030
54,695
" 406.158
I ; 20.5,725
! ~ 773,502
I ~ . ~ 81,950
458,857
264,514
1,706,284
~~:~~
3~:~~
Interbank deposits
.
601 ,808
6 1~.,Io403D'
584,348
Dorrowiop from Federal Reserve Bank . . .• • . •. .
7,000
.N
2,000
·Includes all demand deposits other t ban interbank a nd United State. Government, lC11
tub items reported as on hand or in process of collectioo.
Federal Reserve notes of this bank in actual circulation increased by $4,799,000 during the month ending August 15,
thus continuing to reflect the rising trend which has been in evidence during the past three months. Despite this recent increase,
however, actual circulation outstanding on August 15, 1947,
was $13,914,000 less than on the same date of last year. Total
CONDITION OF THE FEDERAL RESERVE DANK OF DALLA S
Total gold certificate reserve.
Ditcounta for membei~ oka .
Forei~ loans 0 0 ( old .......... . ... .
U. 8. Governmentsecurit iea . . .... . ....... . ....... .
Total earning 8.8Sets ...•.•...... . . . •. .....•.•....
Member banks reterve deposita .......... . ...... . . .
FederaJ Rnerve Notes in ac'ual circulation . . , ...... .
July 16.
August 15,
1946
$495.614
$484,256
3,840
911,463
916,303
763.642
602.863
2,200
908
920,030
923,138
776,444
584,150
1,000
GROSS DE MAN D AND TIME DEPOSITS OF MEMBER BANKS
Eleventh Federal Reserve District
(Average or daily ligures in tbousands of dollars)
Combi ned total
G,,,,,
demand
. $4.481,169
1945 ..
July 1946.
. ... 4,942.638
March 1947 . . : : . . . . ... . . 4,654.452
~ril 1947 .... . .... . . .. 4,617.649
• ay
1947 . . . . .. ...... . 4.600.179
.... 4,649.262
June 1947 . . .
July
1947 . . .
. . .. 4,758,677
r - Revised.
July
1947
earning assets of this Federal Reserve Bank increased during the
month ending August 15 by $33, 51 6,000 , all of which was accounted for by an increase in holdings of United States Government securities.
Reserve eity bank!
Gross
Time
13 98,157
494,265
51 7,296
524.3M
533 ,264
540,ooOr
642.083
demand
Country banks
Oro..
Time
12,306,773 $249,764
2,437.422 313.893
2,225,418 326.693
2,208,463 330.604
2,207,446 335,54U
2,234.807 338,684,
2,288.216 339,500
Time
demand
12,174,396 1148,3 03
2,505,216 180,372
2,429,034 100,1302
2,409,086 103,751
2,392,733 107,705
2,414,405 20 1,316
2.470,462 202 ,403
Debits to individual accounts during July, as reported by
banks in 24 cities throughout the district, continued t o show
substantial increases over the corresponding month of last year
in most instances. Reports from banks in 10 of the cities, however, showed a decline in bank debits during Jul y as compared
with the preceding month, with the rate of decline ranging from
10 per cent in Austin to less than one per cent in El Paso and Port
t\rthur. The largest increases in bank debits during J uly were
experienced by the banks in Amarillo and Lubbock, which reported increases of 32 and 13 per cent, respectively. T he table
of bank debits published in this R evil!1.IJ has been revised with
this issue to show, in addition to debits, the end-of-month deposits and annual rate of turnover of deposits of banks in 24
cities in the district. Back data of this series were published in
BANK DEBITS, E ND-OF·MONTH DEPOSITS, AND ANNUAL RATE OF TURNOVER
OF DEPOSITS
(Dollar ligures in t houaands)
E nd-o{ month
Petg. change from
cleposits
J uly
July 1947
June
J uly
1947
1947
1946
77,520
48.114 - 1
+ 10
12,603
17,308
+10
+9
27,268
37,893
+3
+8
143,684
103,986 - 6
+13
38,623
27,480 - 2 - + 15
78,832
96.805 + 32
+ 35
84,644 - 10
95,608
+6
81 ,490
70.111 - 4
+ 12
71 ,351
67,848
+ 10
+ 9
18.793
8,488 - 1
+ 25
668,697
85 1.215 - 6
+ 13
-j
104,036
89.121
+ 5
271,830
340.468 + 4
+11
89,420
59,461 + j
+ 4
773,834
838.117 +6
+23
20,640
15,357
+4
+ 5
S4 ,~76
52,570
+ 13
+3 7
39,248
29.775 - j
+ 15
-3
37.098
25.437 - 4
313,627
220.312 +1
+ 1
12,702 +3
22,037
+3
33 ,715 +7
47,845
+11
44,246
61,229
+3
+4
71,484
47.687 - 2
+28
~--Debi(,g---
City
Tucson. Ariz •... • . , .•
Roewell, N. M.. , .. ...
Monroe, La •.. . . . ....
Shreveport, La•......
Abilene . . . .. . . . . ....
Amarillo .... . . . . . , ..
Austin . .. . . . . .. . . . ..
Beaumont ...... ... ..
Corpus Christi .. . . ...
Corsicana .. . . . . . ...
Dallas .. . . • .. .• ... . .
EIP.." . ... . ... . . .. .
F ort Worth ..........
Galveston .. .. . , . ....
Houston . . .. . , ... ....
Laredo . .... . ... . ....
Lubbock . .. . . •......
Port Arthur . .. . ... . .
San Angelo . .. , . . ... .
San Antonio .... . . , . ,
Texarkana· .... . .. , . .
(Thoueanda of dollan)
August 15.
1947
$48 1.491
2,200
974
953,480
956,654
80 1, 152
588,949
Gross demand deposits of the member banks of the district
were expanded during July by $109,415 ,000, t o bring t he district's total to $4,758,677,000. The increase dur ing July represented the second monthly gain since the declining t rend
which had been in effect for more than a year was reversed during June. Time deposits of the dist rict's member banks continued their upward movement to total $54 2,08 3,0 00. T he increases in gross demand deposits and in time deposit s were experienced by both reserve city banks and coun try banks, with
the latest increments being distributed about equally bet ween
the two types of institutions.
~~:::: :::::::: : :::
Wichita Falls .....
Annual rate of turnover
fgl~
7.4
8.9
8.5
8.8
8.5
14.9
10.6
10.3
13.1
5 .4
15.4
10.3
15.0
8.0
13. 1
9.0
11.4
9.2
8.4
8.4
7.0
8 .5
8.8
8.3
June
1947
7.4
8.3
8.5
9.2
8.8
11 . 5
11 .8
10.8
]2 .2
5.4
14 .8
10 .3
14 .3
7.9
12.5
8 .•
10.1
9 .4
9.0
8.4
6.7
8.0
8.4
8.9
July
1946
7.2
7 .4
7 .7
7.4
7.0
11.8
9.6
9.4
tl .4
4 .3
13.1
9 .•
13 .0
8.2
10.6
8.2
8.4
7.7
8.0
7 .9
6.1
7. 7
7.3
6.2
12 . 0
11.5
10.2
3,233,300
Total- 24 cities ..
. 3,210.932
+11
+4
·Thie figure includes only one bank ill T exarkana, Texas. Total debikt {or all banks in
Texarkana, Texas-Arkansas, including two banks located in t he E ighth Dl~t r ict amouoted
t o 121,453,000 .
1Cbange less than one-balf of ODe per cent.
"Bank Debits, End-of-Month Deposits, and Annual R at e of
Turnover of Deposits in Twenty-Four R eporting Cities-Eleventh Federal Reserv e District" as a supplement to the August 1
Monthly Busin.ess R eview of this bank and may be obtained
from the Research Department.
142
MONTHLY BUSINESS REVIEW
SAVINGS DEPOSITS
Reporting Danks-Eleventh Federal Reserve Bank
July 31, 1947
Percenta~e change in
u.vinp epoaits {rom
Number
Number of Amount of
reporting
aavings
savings
July 31,
June 30,
banks
depositors
deposits
19.6
1947
Beaumont . ..• . .
3
12,227 $ 6,9O(l,ll1)9 -11 .7
- 1.4
Dallas . .. .. , ...
8
133,843
78,154,784
+ 0.4
- 1.2
EIP...........
2
33,858
23,772,000
- 2.2
+ ' .0
Fort Worth ." ..
3
42,368
34 ,706 ,064
- 1.0
+ 4 .8
Galve'ltoQ .. . . . .
4
22 ,728
21,706.' 30
+ 6.9
+1.9
Houston . . , . .. . .. . •. •. •.•
8
106.089
70.475.089 - 0 .8
- 0 .6
Lubbock .... .. ...... .. ..
2
1,139
1,727,193 -28.9
- 6.3
Port Artbur ..... , ..•.•.•
2
6,541
5,255 ,039 - 4 .0
- 0 .0
San Alltonio . . . . . ...•.•.•
5
38,821
47.047.450
+ 7.1
- 0 .2
Shreveport, La •.•...• .• ••
3
32.892
26.306.442
+ 0 .4
- 0.3
Waco . . ..... . ......•.•.•
3
0,752
0.616.733
+ 6.1
- 1.3
Wichita Fall•...... •. .•. .
3
6,960
' ,665,838 - 4 . 1
+ 0.2
All other ....•••.•.•. , •.•
66
63,522
54,26g,677 + 6.7
- 0 .6
Total. ........
102
510,740
$38',602,828
--+ 3 .3
-
0 .7
months of this year. Readjustments in the women's apparel industry which accompanied changes in styling apparently were
completed from May to July, and some expansion of employment is anticipated in apparel plants during the fall season. Activity in food processing is expected to increase seasonally, and
wood processing establishments probably will continue operations near present levels. Manufacturers of iron and steel products report that demands for their output cannot be fully met
because of continuing shortages of sheet steel, tubular goods,
screws, nuts, bolts, and other small tooled products, The supply
situation in other industries has eased slightly. Textiles are obtained more readily than last spring or at this time in 1946, alDOMESTIC CONSUMPTION AND STOCKS OF COTION-(B.l..)
J uly
1947
12,985
677,489
Con8umption at:
MEMBER BANK RESERVES AND RELATED FACTORS
Eleventh Federal ReserTe District
(Milliolll of dollara)
Chances in weeks ended
Cumulative chaniN
5weeb
ended
Aos.13, A"".6, Juty 30, July 23,
1947
1947
1647
Federal Reserve CreditHH7
local.. ... . ... ... ... ...
7.3 - 8.8 + ' .9 - 8.1
Interdiltrid eommercial &
fm&ncial transactionl .... - 2. 3 + 3.3 - 5 . 5 -158
Treaaury oJ)f:rationl ......
4. 5 +21.8 +11.5 +10 .3
Currency transaction•. ,.,.
2. 2 - 6.3 - 1.6 - 0 . 7
Other depolih at the
Feden.l Reserve Bank . .
0. 2
0.7 - 1.0 + 0.1
Other Federal Reacrve
Accounts .... . ... .. ... . . . ... . + 0 . 5 - 0.2 + 0.1
Member Bank resene
balanceJ .... ........... + 11 .9 + 11.2 + 8.1 - 14.1
Note: Amounts prcccJeJ by a minua lign reduce reservea;
add ttJ tucrvt'8.
+
+
+
+
+
July 16. Aug. 13.
l Q.7
1947
- 0.6 - 6.3
Jlln. I to
Aug. 13,
1647
6.6
-
+ 3.0
+ 4.2
+ 2.2
-17 .3
+52.3
- 4.2
-375.1
+3113.2
+ 29.6
+ 0.1
+ 0. 1
+
0.6
+ 0.2
+ 0 .6
+
1.6
+ 9.1
+26.2
+ 14 . 1
those witb. plua aign prooodinl
New Par Banks
On July 19, 1947, the West Side State Bank, Fort
Wortb, Texas, a newly organized n<m.member bank located in the Eiel'enth Federal Reserve District, opened
for busilless alld was add'ed to the Federal R eserve Par List
011 that date. This bank has capital of $150,000 and surplus and jrrofits of $150,000. Its officers are: E. E. Bewley,
President; C. F. Fry, Vice President; and Phil A. Tillery,
Cashier.
011 August 2,1947, the First State Btmk, Frisco, Texas,
a newly organized nonmember bank, located in the Eleventh Federal R eserve District, opewd for Intsiness and
was added to the Federal Reserve Par List on the same
date. This ballk has capital of $35,000 ami S1trpllls and
undivided profit s of $1 7, 500. Its president is Mr. C. B.
Johnson.
On August 16, 1947, the First State Bank, LaMarque,
Texas, a newly organized nonmember bank located itJ the
Eleventh Federal R eserve District, opened f01' business
and was add'ed to the Federal Reserve Par List on that
date. This bank bas capital of $50,000 (md surplus and
undivided Jrrofits of $20 ,000. lis president is Mr. W. F.
Remschcl, Jr.
INDUSTRY
Executives of representative manufacturing organizations in
this district who were interviewed during August expect operations in their plants and respective industries to be maintained
at current levels or to be increased slightly during the remaining
July
19'6
17.M7
720,603
Texas milla . . . . . . . . . ... . .
United States MiIJ.e, •.
U. S. stocka-end of month:
In consuming estabm't.s . . . 1,'00,077
000,610
Public atg. &: compresses . .
Jun.
1947
11,696
788.261
-
Aug. 1 to July 31This sea80n Last 8C88On
2OI,ISO
10,636,30{
200,205
9, 163,207
2,282,384
4,4113,577
though higher-quality cotton fabrics still are scarce. Hardwoods
used in furniture manufacture, pigments, oils, and many other
industrial supplies also have become more readily available.
COTIONSEED AND COTIONSEED PRODUCTS
_ _ _ _ T""as _ _ _ _--1United Ststes--August 1 to July 31
August 1 to July 31
Tbis scason
Lust ~n
This season
lAst &ea8On
Cottonseed received at mills
627,367
(tons) ........... ... . ..... .
63 1,378
Cottonseed on hand July 31
53,233
(tons) .................... .
Production or produete:
191,334
Crude oil (thousand Ibs.) ... .
297,221
Cake and me:'l.l (tona) .. .... .
140,393
Hulls (tons) .. . . . . ....... . .
214,526
Li.nt.ers (running bales) . . . . • .
Stocks on hand July 31:
Crude oil (thousand the.) . . ..
2,772
Cake and meal (tons) . . . . . . .
8,305
J-lul1s (tons) . . . . . . . . . . . . .. .
8,304Linte... (running bal..) .. .. ..
14,901
SOURCE: United States Bureau of CenSU8,
Cottonseed cru.shed (tons) ... . .
674,898
701,843
3,068,968
3,088,335
3,162,939
3,261,915
57,254
98,339
117,806
211.784
972,617
3U.I23
1.361.688
728,594
991.1~
1.017,M6
1,434.326
783,.SO
988,800
7,040
46,916
36,484
70 .• 31
10,386
31,628
25.626
35,054
1113,306
221,603
1,514
6.'74
3.806
7,647
Manufacturers' inventories in this area are reported to be
much higher dollarwise than a year ago, and generally somewhat
larger on a volume basis. Raw-material inventories still are unbalanced in many plants, reflectin g inability to obtain all materials in the quantities and on the delivery schedules which are
desired. The executives indicate, however, that total stocks are
not excessive as compared with present and anticipated sales
volume.
The value of construction contracts awarded in the Eleventh
District increased moderately in July, primarily reflecting larger
awards for utility construction and nonresidential buildings.
The removal of restrictions from all categories of construction
VALUE OF CONSTRUC,'TION CONTRACTS AWARDED
(Thousands of dollan)
Eleventh D istrict-rota.I...
Residential ... , ..
All other.
United States·- total .. . . .
Residential. . . . .. . . . .
All other .. ... . . . . .
July
1947
$ 54.087p
18.577p
35,510p
660,254
2'0.885
419,369
July
19'6
, ~t~1~ .
22.346
717,991
281 ,227
'36,76'
·37 states east. of the R ocky Mountains.
SOURCE: F. W. Dodge Corporat ion.
June
1947
$ 45.52'
20,175
25,349
605,070
209,458
395,612
January 1
194.7
$ 383,7720
146,282p
237,41lOp
' ,1 62,R99
1,709,787
2,«3,112
to July 31
1946
$ 376,788
166,132
210,656
' ,855,727
1,9H,700
2,W,027
p-ProliruilltlfY.
other than amusement and recreational building, which was
effective June 30, and liberalization of rent controls apparently
have halted the decline in awards in this district which charac-
113
MONTHLY BUSINESS REVIEW
terized the first six months of 1947. Numerous smaller projects
which ~re prohibited under earlier regulations are being
started, and the number of rental dwellings being constructed
is reported to have increased. Moreover, there are forecasts of
some large-scale utility programs, public works, and commercial projects to be initiated soon.
DUlWING PERMITS
Peretlntage
July 1947
• Percentage cbange Jan. 1 toJuly31, 194:7 ehan~e
- -- - - - - valuation from =-:-::----::,:..,--':-_ valuation
No.
Abilene .•..•.....
Amarillo ..••.....
Auatin .•...• .. _,.
Beaumont . ...... .
CorpUJ Christi ... .
DallAs ......... ..
EIP.!O ....... . . .
FOri Worth ...• . . .
Galveston .. . . .. . .
Houston ... _. . ... .
Lubboc:k ..•. •....
Port Arthur ... . . .
S~n Antonio ... . . .
Sh reveport, La••. .
\Vaco ..... _..... .
Wichita Falls ...• .
84 I
189
387
407
341
1.426
140
605
266
768
211
213
1, 10<
389
150
61
Valuation July 1946 June 1947
290,700
+ 81
+ 27
678,493
2
- 29
2,003,724
+ 39
+117
1,495,778
+366
+183
1.392.5M
+ 73
+ 6
5,238,508
+ 81
+ 23
309,450
+ 73
+ 22
1,773,231
+ 24
9
182.626
- 39
- 13
6, 130.962
+ 426
- 31
1,169.669
+ 48
+ 11
195. 172
+ 24
- 19
2.611.232
+ 80
+ 10
773.734
4
- 17
1.06'.575
+ 16
j
277,200
+ 36
- 37
Total. . . . .... 0,73' $20,180,687
+ 85
+
I
No.
Valuation from 1946
648 I 2.648,243 -11
1,201
40430,016 - 13
3,496 11,MI.134
3
2,347
3.872,~3
+91
2.M7
8.676,606 +43
9.444 29,466.578 - j
887
3,713,070 +39
4,191
13.314.146 -19
1.00 1
1,376.139 - G
4,71 9 39.078.954 - 3
1,346
7.075,101 + 3
1.094
1,364,2M - 7
8.144 14.625.680 - 7
2.435
6,184.5U + I
972
4,915.219 +57
471
1,420,0<5 + 6
+
44,943 1153.699,163
+1
fChange leu than one--balf of one per cent.
Daily average production of crude oil in this district during
July was maintained near the all-time peak of 2,490,000 barre].,
attained the preceding month, and production outside the dis.
\rict reached a new high of 2,618 ,000 barrels. Despite record
}roduction 3mce April, stocks of crude oil in the United States
\lave declined slightly, and total st"cks of petroleum producu
have increased only moderately. Demand for crude oil and its
products continues undiminished. In those fields in this district
in which output can be expanded without reducing ultimate recovery from underground reservoirs, production is being increased where transportation facilities can be provided to carry
3n incre.sed flow of oil.
CRUDE OIL PRODUCTION-(B""Ia)
Diatrict t .. . .... .. .. . ... . •..
2 . . .... . .. .... . . ... .
B............... . .. .
c... ...... .... ..... .
5 . . . . ... . . . ... . .. .. .
Other
6. . . . . . . . . ... . .. ... .
n.. ....... .....•... .
7b . .. .............. .
7c . . •.••• . ..... . ... .
8 . . .. .... . ........ . .
9 ... ............ .. . .
Total
produdioD
680,850
4,806,100
14,987,400
7,156,700
1,215,000
10,065,500
3,514,260
1,157,850
1,209,060
18,179.500
3,\lO!l,260
10 . . . ... ... ...... . . . .
2,600.600
Total Teua .
09,500,950
Ne.. Muioo .. . ............. .
3,361,600
Narth LouWanA ..... . .... .
3,009,550
Ta\al Diat.Mct .. .. ......... . 75,87 2,100
OuL~de District . . . . . . ... . ... .
~1,143,850
United Statell ......... . . . . . . . 157,0 15,060
Dailyava.
production
22.253
155.035
483 .'64
230.861
39.223
324.694
113,363
37.350
39.002
586.435
126,105
SI,I81
2.24 1,966
108.' 39
97.os2
2.H7,487
2,617,543
5.005.030
lncreue or deer..... in daily
neraa., production from
June 1041
+ 676
- 11,396
- 10,469
-16,609
697
- 8.926
- 2,62'
- 2,057
+
9
+26.895
- 14.785
- 3.419
- 44.611
+ 1.944
+ 289
- 42.278
+ 9.395
-32 ,883
July 1946
2,747
2,942
- 26,952
+
+
+
3,003
4,862
9,617
+ 6.M7
+ 6,331
+ 11,033
+ 20,181
3,298
956
+ IM29
+ 10,044
+ 1'.097
+ 42.670
+101,678
+ 14',348
-
SOURCE: Eatimated from American Petroleum Ill!tituie weekly report..
Despite shottages of drill pipe and casing, a somewhat greater
number of oil wells was completed in the United States and in
this district during the first six months of 1947 than during the
comparable period of any year since 1941. The footage drilled
thus far this year has exceeded that in any comparable period
since 1937, when an all-time record was established. Exploratory drilling during the first half of 1947 was more intensive
than at any prior time in the history of the industry and, in
many Texas sections of the Eleventh District, apparently was
unusually successful. During the period 839 wildcats were
completed in the district, of which 113, or 13.5 per cent, were
productive; whereas, during the ten years, 1937-1946, prod-
NEW WELLS COMPLETED
--Number wclb compleled---Total footnge drilled-Thousands of feet)
Jan.-Junc 1947 Jnn.-Juuc 1916 Jan. une UI47 Jan.-June 1946
United State........ . . .......
14,M6
13,920
50.389
46,7110
Elevent.h Di.trid ........... .
4,777
4,465
20,810
HI,1 40
New Mexico ...... ..... .. ..
260
195
J,138
703
North Louisiana..... . . .. . . .
323
334
1,083
1,530
TOUII.. ......... . . .. ..... .
',194
3,936
18,589
16,907
District.e I, 2, and 4 . . . . . . .
975
807
5,275
4,389
(Southwest Tuaa)
Distrio$ 3 .... . ... . ... . ... .
335
2,421
2,404
3H
(Upper Coa.tal T....)
1,882
Distrlct.e 5 and 6 ........ ..
285
344
1,468
(East T ....)
3,740
Districts 1-8 and 9 ...
1,345
1,470
3,802
(North T.",,)
3,938
Districts 1-C and 8 ....... •
800
4,854
993
(W..IT....)
Diatrict 10 .............. .
222
ISO
769
554
(Panhandle TlUae)
BOURCE: World Oil.
J
uctive wells amounted to only 10.8 per cent of all wildcat completions in the district. Drilling tests seeking new pay zones or
extensions of known fields also have been more successful than
usual, and it may be that additions to proven reserves are offsetting the heavy production currently required to meet the
peak demands for petroleum products. Continuation of high
levels of developmental drilling and further expansion of exploratory drilling seem likely to occur in response to the growing demand for crude oil. The number of drilling rigs in operation has increased in most sections of the Eleventh District and
in the United States as a whole in recent months, and at the end
of June, far exceeded the number active a year earlier.
WILDCAT WELl, CmIPLETIONS·
_ - _ 1937·1948
January.June tG47-Number _ _ Productivc- _ Number --Productive-of wells Number % of Total of wells Number % of Total
3,459
10.8
2,084
249
11 .9
United SLates ..••. .. ... .. 32,007
1.432
10.8
839
113
13 .5
E leventh DiAtriet ....... . 13,27 1
611
110
11
.7
29
3
10.3
New Mexico ......... ..
822
64
7 .8
65
5
7.7
North Louisiana ... .. . . .
1,308
11 .0
745
105
14.1
Texu .. . ... . ..... . . . . . 11,038
4,409
423
9.6
267
.2
16.7
Districts I, 2, and 4... .
(South...01 T....)
17
19.8
1M
12.2
86
Diatrici 3. ... .. . . . . . . .
1,250
(Upper Coastal T....)
52
68
6.3
5.8
Diatncta 5 and 6. .. .. .
1,086
(East T • ..,)
31
12.2
490
13.0
Districts 7-B and 9... .
3.764
26'
(North T • ..,)
II
14.1
168
12 .5
78
Districts 7-C Bnd 8. . . .
1,348
(West Texas)
8
12.5
6.9
Diatrict 10...... .. ....
72
(Panhandle Texas)
'Exclll3ive of all teste seeking new pay lones or outposts attempting to ext.clld known fields.
SOURCE: World Oil.
Activity at cottonseed oil mills in Texas and in the United
States was limited during the 1946-47 season by shortages of
cottonseed which were only partly offset by moderate increases
in supplies of such alternative raw materials for crushing as soybeans and copra. During the twelve months ended July 31,
1947, cottonseed receipts at United States mills were smaller
than in any prior season since 1921-1922, and receipts at Texas
mills were the smallest of record. Moreover, stocks of seed and
its products already had been depleted during the 1945-1946
season and could not be drawn upon further to meet the heavy
domestic and foreign demands for vegetable oils and livestock
feeds which developed.
The August 1 carry-over of cottonseed and its products from
last season in United States and in Texas mills was near the very
low level of a year earlier. Prospective supplies of cottonseed
are substantially larger than at this time last year, however, particularly in Texas, where a considerably larger cotton acreage
and an even greater increase in the forecast of cotton production may yield 75 to 100 per cent more seed than in 1946-1947.
larger quantities of copra, soybeans, and other oil-bearing seeds
also may be available to those mills equipped to process them.
@FedFRASER